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18 January 2019

Q4 2018 and 12M 2018 NLMK Group Trading update

In 2018, NLMK Group sales grew to 17.6 m t, up 7% yoy. Steel output grew by 2% yoy to 17.5 m t. Steel capacity utilization rate was 99%.

12M 2018 highlights:

  • Steel output increased by 2% yoy to 17.5 m t. 
  • Group sales grew by 7% yoy to 17.6 m t, driven by growth of demand in key sales markets.
  • Sales growth was supported by a +20% yoy growth of semi-finished product sales to 6.8 m t. Finished product sales remained flat yoy at 10.8 m t. 
  • HVA sales increased by 3% yoy to 5 m t.
  • Sales in home markets decreased insignificantly by 1% to 10.56 m t, while sales growth in export markets totalled 17%. Sales in home markets continue to account for the bulk of Group sales, with a 61% share in 2018.
  • Steel capacity utilization rate was 99%.

    Q4 2018 highlights:

  • Steel output decreased by -1% qoq (+1% yoy) to 4.4 m t due to planned maintenance at NLMK Russia Long and NLMK USA.
  • Group sales grew by 5% qoq (+6% yoy) to 4.6 m t, driven by higher demand for slabs and pig iron in export markets.
  • Sales in international markets grew by 32% qoq (+33% yoy) to 2.1 m t, driven by the growth of semi-finished product exports from the Russian sites due to intensified demand in the sales markets. Sales in home markets dropped to 2.5 m t (-9% qoq; -12% yoy) due to the seasonal weakening in demand in the Russian market. The share of Group sales to home markets decreased to 55% (-9 p.p. qoq, -9 p.p. yoy).